Ethereum News Today: LayerZero Launches DAM for Zero-Fee Cross-Chain Transfers Between BNB Chain and Ethereum

Generated by AI AgentCoin World
Saturday, Aug 16, 2025 4:31 am ET1min read
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Aime RobotAime Summary

- LayerZero launches DAM, a zero-fee Omnichain Fungible Token (OFT) via Stargate Finance, enabling seamless BNB Chain-Ethereum transfers with 1:1 liquidity and no slippage.

- Built on LayerZero’s OFT standard, DAM eliminates token wrapping and liquidity pools, streamlining cross-chain operations while challenging traditional fee-based transaction models.

- Critics question long-term sustainability of the zero-fee model, with potential strategies including subsidies, fee redistribution, or layered pricing to maintain platform viability.

- DAM solidifies LayerZero’s leadership in cross-chain finance by redefining interoperability standards, though its success hinges on balancing innovation with economic sustainability.

LayerZero has launched DAM, an Omnichain Fungible Token (OFT), through

Stargate
Finance, enabling zero-fee cross-chain token transfers between
BNB
Chain and
Ethereum
. DAM allows for 1:1 liquidity and eliminates slippage using Stargate’s liquidity protocol, challenging traditional transaction models that typically require users to pay per transfer [1]. This development is seen as a major advancement in omnichain finance, offering high throughput and streamlined interoperability.

Built on LayerZero’s OFT standard, DAM represents a framework gaining traction across the blockchain space, particularly with stablecoins and tokens like HOME and SKATE. The OFT standard eliminates the need for wrapping tokens or creating additional liquidity pools, which simplifies cross-chain transfers and enhances overall liquidity [1]. The adoption of OFT by various projects highlights the growing influence of LayerZero in the cross-chain ecosystem.

Despite the novelty and immediate appeal of DAM’s zero-fee model, concerns persist regarding its long-term sustainability. Critics question how LayerZero and Stargate will sustain such a model without traditional fee-based revenue streams. Potential strategies include subsidies from either platform, redistribution of fees to liquidity providers, or the eventual introduction of layered fee structures [1]. Community responses reflect a mix of optimism and caution, underscoring the dual perception of DAM as both an innovative tool and a financial gamble.

LayerZero’s position as a key player in the cross-chain space is further solidified with the launch of DAM. The token reinforces the company’s broader vision of reducing transactional friction and improving efficiency in cross-chain operations [1]. If the model proves viable, DAM could set a new standard in token transfers, altering expectations for omnichain interactions.

The release of DAM signifies more than just a technical improvement; it represents a strategic shift in how cross-chain token movement is approached. By removing costs and complexity, LayerZero is redefining traditional models and establishing a new benchmark for interoperability [1]. Whether the model remains unchanged or evolves over time, its impact is already shaping the landscape of cross-chain finance.

Source:

[1] LayerZero Launches DAM: Zero-Fee Cross-Chain Token Transfers (https://coinfomania.com/layerzero-dam-zero-fee-cross-chain/)